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How much launch demand covers development and the first production run?
Calculate the contribution break-even while separating inventory purchasing cash from cost of sold units.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- One-time product development
- $100,000
- Launch marketing & fixed setup
- $50,000
- Net selling price / unit
- $120
- Variable sold-unit cost
- $55
- Initial production run
- 5,000
- First-year units sold
- 3,500
First-year launch contribution
Example result only, not a forecast or promise.
- Contribution break-even units
- 2,308
- Initial production purchasing cash
- $275,000
- Unsold initial inventory at cost
- $82,500
What to do with this result
Validate paid demand before increasing the production run; unsold inventory is cash tied up, not automatically an expense.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
First-year contribution = sold units × (price − unit cost) − development − launch setup. Initial purchasing cash = production run × unit cost; unsold units remain inventory.
Assumptions and limitations
- Example inputs are editable scenarios, not Aryo results or independently verified industry benchmarks.
- Business revenue is not owner income. These scenarios do not predict demand, guarantee earnings or establish a business valuation.